Kenyan Fintech Lendable Completes Second Round of Asset-Backed Pass-Through Notes With Institutional Investors

Kenya-based Fintech platform Lendable announced on Thursday the closing of an innovative secured dual tranche 36-month note program, called Multi-Originator Segregated Portfolio 2, or “MOP2.” According to Lendable, MOP2 is the second fundraiser of secured pass-through notes backed by consumer, SME, solar and productive asset loans originated by Sub-Saharan alternative lenders using mobile payment technology. This was Lendable’s first institutional investor-led round for MOP notes. The company reported:

“MOP2’s Senior Note investors included Prudential Financial (their first investment in sub-Saharan African credit), Ceniarth, LLC, Calvert Impact Capital, Sarona Asset Management and Variant Investments. Lendable, through its asset management subsidiary, was the holder of MOP2’s subordinated notes (which comprise 10% of the total outstanding principal amount of all MOP2 notes). Lendable also received the support of an innovative convertible grant for a portion of the Subordinated Notes from the Dutch Development Bank FMO.”

While sharing more details about the program, Daniel Goldfarb, Lendable’s CEO and Co-Founder, stated:

“MOP2 marks a significant milestone towards Lendable’s goal of providing fair credit to the under- and un-banked consumer and SME market segment in frontier markets. We are excited that we were able to structure MOP2 to allow institutional investors to participate in our mission and to further diversify our investor base in this way. We are also very excited about the partnership with the Dutch Development Bank FMO, which provides an interesting template for cooperation between Lendable and other DFIs in the future.”

As previously reported, Lendable provides structured finance facilities to seven African alternative lenders, including off-grid energy companies, SME lenders and asset finance companies. Late in 2017 Lendable entered into £300 million loan deal with investment and mortgage firm Castle Trust shortly after the online lender reached its £100 million milestone.

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